>> sean: now with debt talks at a standstill the senate minority leader proposes a last ditch option. >> as long as this president is in the oval office real solution is ununattainable. >> sean: sarah palin is here with reaction. what does debt ceiling debate reveal about the nature of the gop? are conservatives in control or is this a victory for the party's rhino wing? ann coulter is here with her take. frank luntz is back with a special focus group. they weigh in on the debt debacle and propose solutions. plus, lights out. democrats emerge victorious in a house vote that may require you to toss out your lightbulbs,

because they are bad for the environment. hannity starts right here, right now. 9 debt debate rains on. -- congressional leaders and president obama have once again failed to reach a deal on how to remedy america's fiscal crisis. one day closer to the august 2nd, deadline when it is believed the u.s. will hit the 14.3 trillion dollar debt ceiling. moody's is placing the aaa bond rating on review for potential downgrade due to our risk for default. the republican leader in the united states senate yesterday offered up what he called a last choice option to the white house. in his plan, which was outraged conservatives, senator mcconnell would hanover to president obama the authority to repeatedly and unilaterally, raise america's borrowing limit unless 2/3 of congress votes again the hikes. in my opinion he's asking

republicans to surrender the power that brought us to this crisis in the first place. to a man who knows no limits on spending your hard earned money. joining us sarah palin. first governor, standing back from all of this, ever imagine in america, 14.3 trillion dollars and we have to raise more money, because they can't live within their means? it is pretty daunting to me. >> it is absolutely nonsensical. lack of planning that our leaders are exercising and showing their constituents coming out of d.c. right now. the lack of understanding that too many have there in d.c., not understanding that obama's big government job killing policies are the antithesis of what our country needs to get back on the right track. our country was built on a strong foundation of reward for work ethic and development

of our natural resources. here we've gone the opposite direction unobama with both those cornerstones. we are where we are now, moody's telling us -- telling us or aaa rate something under review because we don't have a plan to get us back on that solid footing. >> sean: we have to look at political reality and we've got to look at reality in terms of what we can get done now with where we are. the republicans have only one piece of congress, the house. the senate, harry reid runs that, the president runs the white house. what would be acceptable? you are a conservative, well-known in the tea party, i'm a registered conservative. i would refer cut, cap and balance. but cut now not 12 years down the road if you can't get that through, the country can't default, that's a reality you agree with, is that correct? >> true. we cannot default.

we have to -- we cannot afford to retreat now. now is not the time to retreat. it is time to reload. we reload with reality by giving facts and numbers to the american public so those of us across the u.s. can start chiming in and letting our representatives know that we will not capitulate, we will not hand over more power to president obama, to further manipulate our economy. article 1 section 8 of our constitution spells out congress has the power of the purse strings. this plan of mcconnell's makes no sense. because it does ced, power to our president and -- cede power to our president and takes away that authority inherent in congress to control the economic decisions that have to be made when it comes to debt. >> sean: i don't want them passing the buck and handing the keys over to barack obama. maybe estimate dollar for

dollar guts. he's going to gut our defense department and i wouldn't cede that responsible to him. like handing over the keys to the car to a teenager who doesn't have his learning permit. >> absolutely. the numbers speak for themselves. when you look at our economic woes and things that have gotten so much worse unpresident obama, we cannot trust him to further manipulate our economy. to further manipulate our u.s. energy supply and the value of our currency via his support of the feds monetizing our debt. now talk of qe 2, 3, 4, presenting money out of thin air to service our debt. the plans un-- the plans under obama are making no sense that is why hraoeurders in congress and the senate have to be stronger -- than ever, no retreat, no capitulation, allowing president obama to understand free market time

tested principles that work for pro-private sector agenda that we need get the economy back on the right track. we cannot afford to back off and hand him with a white flag waving saying here, mr. president, we trust you, you take over, you do it. because, our president has failed in that arena. >> sean: as it relates to what you said, retreat, capitulation. here's the president's strategy: class warfare even if he raises taxes on people with jet, 300 million dollars, nothing. disabled. it seems there's a way to put the shoe on the other foot. i think i have a plan and idea where congress would go ahead and they would protect social security, raise the debt ceiling, put the cuts in place, at least dollar for dollar, then hand it off to the senate. and the president.

and then if they fail to pass it and sign it, then it is on their shoulders. that seem like a good short term plan until the election? >> well, i'm still not one to buy into this notion that we must incur more debt. we must increase the debt ceiling by august 2nd, otherwise there will be catastrophe. i still don't believe that's necessarily the case. >> sean: i agree. >> 200 billion dollars coming into the federal government every month. it takes -- i'm sorry we have 35 billion dollars that we must use to service the debt, 50 billion dollars that we must use to write those social security checks. 2.9 billion to pay for our military. and other essentials. you prioritize. our president essentially suggested the other day that he's not able to prioritize. that's a chief executive of our nation, he cannot prioritize. that's why he suggested that

social security checks may not be written come august 2nd, if that debt ceiling isn't increased. no. you pay for the s first then nonessentials have to wait. that's reality. >> sean: you wouldn't raise the debt ceiling at all? i have the numbers in front of me. we take in 200 billion dollars every month. 29 billion interest on the debt, 49 billion social security, 50 billion medicare, medicaid, 2.9 active military, veterans affairs 2.9 billion. only 39 billion left. the fbi, cia, all these agencies would risk shutting down. i wouldn't mine the epa perhaps. there is a risk -- i wouldn't mind the epa perhaps there. is a risk there politically, is there not? >> there are departments that can be revamped and some bills that can wait. again, it -- it is our president's job as the leader of the executive branch to

prioritize and administer those dollars that congress has allocated. our president obviously, isn't capable of doing that, because he has no plan that he can put forward to say here are my priorities. instead, as he did some months ago when he said that government would shutdown if x, y and z weren't accomplished. the military would be thrown under the bus. then he said the other day next go-round is going to be our seniors who get thrown around the bus. >> sean: that lie needs to be highlighted. we are not going to go bankrupt. we are going to pay our debts. seniors are going to get their social security, no matter what. i think it is so indefensible what he's doing by trying to use seniors as a pawn. do you agree? do you think what he's done is calculating? >> i believe it is shameful he's trying to scare our

esteem seniors who built this country and contributed and invested in this country over all these years that he would threaten to throw them under the bus and not write their social security checks. that fear-mongering, we can buy into that. it leads me to remind you and viewers, that we can't wave a white flag and surrender and say heaven forbid those threats that our president is throwing out against our seniors or military or those disabled who need a safety net that they are not going to be taken care of by their fellow citizens because our president has no plan to deal with an economy that is going bankrupt. >> sean: governor i still have a question or two on this i was shocked, the governor had a favorable piece in what she calls lame stream media. much more coming up after the break. >> plus, frank luntz will join me with a special focus group from our nation's capital. all of that and more coming

up. >> quick programming note: this monday, a special hannity. the first great american forum show makes its debut with our special guest jeb bush. next monday, 9:00 eastern, right here. my doctor told me calcium is besabsorbed in small continuous amounts. only one calcium supplement does that in one daily dose. new citracal slow release... continuously releases calcium plus d for the efficient absorption my body needs. citracal.

on a track that simulates the world's toughest roads. ♪ [ tires screeching ] ♪ if it can survive this drive... ♪ it can survive yours. the nissan altima. innovation that lasts. innovation for all. ♪

♪ i'm your venus ♪ i'm your fire ...needs protection. introducing venus proskin with moisture rich shave gel bars enhanced with a triple blend of body butters that create a layer of protection for yr skin with every close stroke. leing your ski beautifully smooth. and your goddess just beautiful. ♪ well, i'm your venus new venus proskin moisture rich. reveal the goddess in you.

>> sean: welcome back. continuing to join me is fox news contributor sarah palin. one last question on this, this is really important. you're right, the president is purposefully being dishonest with the american people over

the numbers. we take in 200 billion dollar we can pay for social security, pay down the debt. the question is, what would be acceptable if from your perspective -- are you saying that you want the republican congress to say, not a penny in raising the debt ceiling, period, end of sentence? am i hearing you correctly? >> if i were in congress, which would not vote to incur more debt. not under this president. i do not trust him. however, as i've gone on record saying i believe it will be increased, because too many in congress believe that the president must have that allowance of increasing debt. having said that, what i would accept, knowing that it is going to be increased any way is demint's plan to cut the cap and balance our budget. we do that in our state and city governments.

it is time the feds do that too. >> sean: that's my plan as well. would you support dollar for dollar debt increase with spending cuts, real cuts, immediate not down the road and a separate bill on balancing the budget? balanced budget amendment. >> that's not a realistic proposal that you're laying out there on the table. because what obama seems to be willing to accept is perhaps talking about cuts, some day down the road. yes, if there were a way to guarantee that he would have to, as the consecutive, make cuts in his departments throughout the federal government, now, immediately, then yes we could talk reasonably about a plan like that. but again, as i say, i don't trust this president to not only not -- he doesn't know how to make those cuts. he's always been one to spend other people's money even if it is just borrowed or printed out of thin air. he's never had to exercise

real executive authority like that. >> sean: if he blames george bush one more time my head is going to explode. i've never seen such a crybaby executive. president nearly three years and still can't take responsibility. you said to newsweek, were you happy with the piece? i read a lot of pieces about you. i thought of all the pieces this was actually somewhat favorable. what did you think? >> -- not favorable, fair. >> the reporter peter boyle, no doubt he's facing the wrath of some of his colleagues in the liberals in the mainstream media. because he did attempt a fair piece. he wanted to talk about a successful executive's record. my team here in alaska and what it is we could produce with rein in the growth of government, pro job creation agenda and he focused on that

it was refreshing to not have a hit piece written. >> sean: you did say in this piece, i think i can win. i know it is the source of great speculation about what your plans are. did have the pleasure of meeting your daughter bristol. she said you had already decided. >> i did say in that article that i believed that i could win. then i on to say, but it doesn't have to be me. i'm not so egotistical as to believe it can only be me to turn this country around. >> if there are those who are out there willing to serve, with good executive experience, who have that servant heart and know not to be obsess civil partisan they can't did what is right for the people that elected them i would support them and do all i could to make sure they defeat barack obama in 2012.

i'm not confident that we have that field set yet that one individual is in the field. i'm still thinking about being one who would offer myself up in the name of service. knowing confidently that i have those common sense fiscally conservative pro-private sector policy experience and ideas that can be put to good work for this country. >> sean: any timeframe governor which you're thinking about making a final decision? >> well, legally of course there are timeframes. that time is coming rapidly in front of all of us. august and september you have to start laying out a plan, if you are to be one to throw your hat in the ring. so that's basically the timeframe. >> sean: governor thank you for being with us. we look forward to that decision. >> coming up, ann coulter

supports senator mcconnell's idea. frank luntz is live with a focus group ready to sound off on all of the latest developments in the great debt debate, next. [ male annocer ] things seem better with travelocity's best price guarantee. our girl's an architect. our boy's a genius. we are awesome parents! biddly-boop. [ male announcer ] if you find a lower rate on a room you've booked, we won't just match it. we'll give you $50 towards your next trip. [ gnome ] it's go time.

the 3.6-liter pentastar v6 engine in the jeep grand cherokee has a best in class driving range of more than 500 miles per tank. which means you don't have to

worry about finding a gas station. which is good... because there just mightot be one. [ male announcer ] you can always find a positive opportunity when you know where to turn. with amway, there's opportunity to pursue another path. ♪ where products created for healthier living and the ability to own your own business can help you take steps toward financial freedom. that's the power of positive. that's amway. to learn me, contact an amway independent businesswner.

>> sean: anointed one walked out of debt negotiations moments ago. eric cantor called his exit abrupt and the meeting tense. that as the senate's most powerful republican is proposing a so-called deal that deal would allow the president to raise the debt limit without cutting a cent from the ballooning deficit. that raises the question, is this what the american people wanted when they gave republicans a huge historic victory in 2010? how much control do conservatives have inside the party? joining us with analysis the author of the new york time brand new book bestseller "demonic." ann coulter is back. >> i'm so happy we are talking about the most important issue this week. >> sean: president crybaby who blames everybody but himself, every poor little problem, the worst i inherited this and bush this did, president

crybaby walked out of the meeting. cantor said he shoved back said i'll see you tomorrow. eric don't call my bluff, i'll go to the american people that's all he does is go to the american people and try to scare them to death. what do you make of his temperament now? >> i think it suggests that i'm right about this mcconnell deal. that it does call the president's bluff. these republicans are screwed six ways from sunday. democrats refuse to cut spending. in the midst of impending financial disaster and the democrats will not cut spending. they cross their arms and ask republicans what they are going to cut. and then they demagogue republicans and say republicans are waging a war on the poor. republicans can't win because they only have a majority in one half of one branch of government. so what mcconnell does is say -- then they try to use the debt ceiling to force the democrats please tell us what you will be willing to cut.

all we keep hearing about is the depreciation credit for private jets which would save 007% of the budget. >> sean: this is a mathematical certainty, if ann coulter, nancy pelosi and harry reid agree, that means ann coulter needs to revisit what she is agreeing to. they've been praising the mcconnell deal. here's the problem i see -- >> yeah but you asked me why obama walked out on meeting? he might be smarter than pelosi. he has to come up with the spending cuts, not pelosi. >> sean: there's two issues in play. we gotta solve the deficit and debt problem. then a political problem because they gotta win the election if they want to fix the economy. if you give mat ability, unilaterally, which is what you are doing, because you are not going to override his tomorrow you give him the ability to raise the debt

ceiling 2 1/2 trillion and say you make the cuts he's going to use phony math. he's going to gut defense. he's not -- there's nothing he's gonna do right with this i don't want to give my 13-year-old teenager the keys to the car. >> well, that's gonna happen any way. because republicans spending caps aren't going to get through and republicans will look mean as happened to representative ryan for suggesting we start doing something about social security, 15 years from now. he's treated like hitler. according to the descriptions of the plan i read in the "new york times" it is obama has his own authority he can decide to raise the debt ceiling if we don't, according to everyone it going to be financial armageddon and the economy will explode so why should republicans be responsible for that? he can raise the debt ceiling for every trillion dollars he raises the debt ceiling by he

has to propose an equivalent amount of budget cuts. congress will still have to write those appropriations bill. we will finally get the democrats to tell us what they are willing to cut. this military business is a red herring. obama is the one who is -- >> sean: let me give you a quick rebut >> entire defense budget is only one trillion. even if obama were to say i'm going to cut the entire defense budget you think democrats are going to sign off on that? you think obama is going to do that? >> sean: you are worried about the demagoguery and class warfare and scaring of seniors and all of that, that's democratic politics 101. that's the old playbook in a very different time that may have worked, these are more serious times. here's my answer to you. if the republicans in the house, the one house they control, if they agree, because i don't think -- i want to vote on the balanced budget amendment i want them

on record. i want cap and balance. but we are going to need a republican senate and republican president in the short term, i want the real cuts, dollar for dollar if it is going to be a debt limit increase. they can do it in the house, hand it off to the senate and president. if all these dire predictions the president is making are true, then it is on his shoulders. not the republicans. they passed the bill. they're saving social security, defense -- >> that bill will not get through the senate. then the debt ceiling doesn't get raised. >> sean: obama will be the first president in american history to default. >> our moody's rating goes down that becomes the republicans fault because they wouldn't vote for the enormous budget. >> sean: you are forgetting two things. no, they passed the bill raising the debt ceiling saving social security. all they are asking for is dollar for dollar cuts.

if obama has the gall to do that it is on his shoulders. >> again, not only will we get no cuts republicans will be hated by voters and voted out of officers because they love social security and medicare. >> sean: ann coulter, when you agree with nancy pelosi and harry reid you are in trouble. >> you are agreeing with obama. >> sean: obama doesn't want the hannity plan. >> he stormed out. >> sean: he's a big crybaby. >> he knows he has to tell us what he's going to cut. something democrats have refused to do for their entire lives. >> sean: i think i enjoyed with you more. >> coming up should conservatives do whatever it takes to strike a deal or stand strong on their principles? frank luntz has his all-american focus group. ñ and do they think the president is a crybaby? coming up.

motorcycles, boats, even rv's.

nobody knows where he got his love for racing. all we know is, it started early. casey mears, driver of the number thirteen geico toyota camry. geico, saving people money on more than just car insurance.

of these abandoned racetracks in america today. automotiveerformance is gone. and all we have left are fallen leaves and broken dreams. oh. wait a second. that is a dodge durango. looks like american performance is doing just fine. ♪ carry on. ♪ >> sean: as the august 2nd

deadline continues to draw closer americans are asking what really happens if a deal isn't reached in time? should conservatives consider senator mcconnell's controversial proposal? what poses the greater economic risk to the country? raising the debt ceiling or going into default? frank luntz is standing by with a focus group. frank, i got that ask two part question: would they vote for any politician that would raise taxes and spend more money and b, would your group support a 10% across the board tax cut? >> okay. let's take sean's question first. how many here want to see a 10% across the board tax cut, raise your hands? even with the deficit where it is, you still want to cut taxes? >> yes! >> every time a business wants to bring in more customers,

every time they want to make more money the first thing they decide to do is have a sale. they call it black friday for a reason. >> you agree? >> yes. >> because? >> like, companies will hire more if they can afford more if they can't afford more they are going to cut. >> history teaches us every time taxes are lowered economic activity increases. and more revenue goes to the government. >> you are shaking your head no? >> we tried that before and it didn't work very well. >> another question by a show of hands. if the republicans vet to raise the debt ceiling, -- vote to raise the debt ceiling and get significant budget cuts, would anyone in this room vote against them as a protest? raise your hands. >> you would vote against them, why? >> because with the election they were put in office to hold with the debt ceiling. >> i wouldn't vote anybody in

who would do the exact opposite. >> who else would vote against the against republicans if they vote to raise? >> i would vote them. they haven't passed a budget. and now they want more money. >> replace them with somebody who is going to spend more? >> let obama come up with the money. >> that's insane. you can't argue about anybody and the republican side passing a budget because they don't have control. you have a president who hasn't come up with a budget. you have the senate in control, democrats have never come up with a budget. >> the president does not come up with a budget that is not his job that is congress' job to come up with the budget. [ applause ] >> i want a show of hands who believes it is the president's responsibility to come up with the budget? who believes it is congress? majority say congress. what do you want them to do? >> right off the bat they need

to cut the services we don't need. i'm going to be controversial and say that unemployment benefits need to be cut. taxes need to also be raised. we need a compromise. >> i agree 100%. there's so much waste going on. we have no clue of what is being wasted. >> i agree. what you subsidize you get more of. i'm going out on a limb and say you need to call back medicare -- not medicare, welfare. cull welfare. >> how many by a -- show of hands would cut welfare? how many would cut medicare? who would not cut medicare? tell me why? >> seniors need to be able to live, get the care they need. >> what about if you personalize medicare? giving seniors more control over what they get and more responsibility for what they do? >> well, yeah i can agree with that. >> you would accept that? >> yeah. >> i would you need to cut medicare. if you don't it is going to be bankrupt. better to have something than

nothing. >> do you think they can get it done, yes or no? how many of you don't? before we were here, we've been showing some of the ads before we came on the air. i want to show you one in particular. almost all are negative this caused a very emotional reaction. neither dial climbs that high and we'll find out why. let's take a look at the ad. >> announcer: this is daniel. his dad died before he was born. his mom works two jobs, but can't afford necessities like health insurance. lucky for daniel headstart will prepare him for school. the school lunch program will help him grow strong and the health program will give him free vaccinations. some in congress say we can't afford to help daniel any more because times are tough. we can afford to abandon daniel. done throw america's babies out with the bathwater.

>> who thought that was a good ad? who thought that was a horrible ad? what was wrong with it? >> my sister was five months pregnant her husband was killed in afghanistan. this ad just disgusts me. so many military overseas are fighting for this country. and our children need to be taken care of. >> that puts a false premise it is not daniel versus cuts. our country spends so much on programs we don't need. >> first thing i want to say is, i'm sorry for your loss. everyone here is sorry for your loss. and we understand what you are going through. >> what kind of country that we are in such a situation that you can throw a baby anybody's baby up and say without government this baby is going to be in a terrible situation? that's a horrible place for our country. >> sean get. >> sean: questions.

i think we hit a lot of good points. i too echo your sentiment we are sorry for this woman's loss. very quick questions. show of hands, would anybody vote for a politician that said they would raise taxes and spend more money, yes or no? >> who would vote for a candidate who would raise taxes? only one out of 27. >> sean: and spend more money? >> who would vote for a candidate who wants to spend more money? separate questions. >> sean: here's my last question. i'm getting sick and tired of the president always blaming that he inherited the worst economy. he's had nearly three years. blaming bush. i think this president has become a crybaby. how many agree, how many disagree? >> who says obama is a crybaby? who voted for obama and says he's a crybaby?

tell me why? >> we have soon a continuation of the policies of his predecessor. his complaints would have been valid if he didn't continue the past policies. >> you voted for him? >> there's enough time to go by before you say it is not from the past, it is now your problem, you have to solve it. >> this is a powerful group. very emotional group this is a very emotional issue. let's hope there is somebody in washington who is listening to what the american people have to say. >> sean: tell everybody thank you. great job. >> our grey, great american panel is next. we all have internal plumbing.

but for some of us with overactive bladder, our pipes just don't work as well as they should. sometimes, i worry my pipes might leak. but i learned there's something more i can do. now, i take care with vesicare. once-daily vesicare can help control your bladder muscle and is proven to treat overactive bladder with symptoms of frequent urges and leaks day and night.

if you have certain stomach or glaucoma problems, or trouble emptying your bladder, do not take vesicare. vesicare may cause allergic reactions that may be serious. if you experience swelling of the face, lips, throat or tongue, stop taking vesicare and get emergency help. tell your doctor right away if you have severe abdominal pain, or become constipated for three or more days. vesicare may cause blurred vision, so use caution while driving or doing unsafe tasks. common side effects are dry mouth, constipation, and indigestion. so why wait ? ask your doctor today... ... about taking care with vesicare.

-- >> sean: tonight on our great, great american panel. he's a policy adviser and an online columnist for the daily. reihan salam is here. he's the author of the new book former democratic new jersey governor one of the few to survive, richard codey

is here. she was miss america 2008, kirsten haglund. thanks for being here. president crybaby, he's been president for three years put your pants on stop blaming people for everything. storms out of this meeting tonight eric cantor saying, shoved back, i'll see you tomorrow, walks out. he says eric don't you call my bluff. he said warning cantor he's going to take his case to the american people. no other president, not ronald reagan, would put up with the treatment that poor president crybaby was getting from the house majority leader. what is this? >> i think it is ridiculous. i'm proud of the republican leadership that is taking ownership of the fact this is why they got elected to stand up to the president in these hard times. say we are not going to raise revenue. we have a spending problem. obama doesn't want to take it. >> sean: did you raise taxes

as a democrat? >> no. but they have a spending problem and a revenue problem. if you don't have enough revenue to meet your obligations and you default, we have a huge problem. these people have to get in the room, stay in the room until they come up with a reasonable compromise. i think boehner and mcconnell are that reasonable and i think they can do it. the republican party is so split. they have the core constituency who is saying you can't default. then the radical right saying let it default, we don't care, blow it up. >> sean: the radical left spent us into oblivion. barack obama nearly five trillion in debt. pelosi five trillion as speaker of the house. 9/11 impacted the economy. in eight years george bush didn't accumulate the deficit,

debt that barack obama did in less than three. >> who got us into this recession? how did we get here? how did we get here? under the bush administration the banks, gave everybody a mortgage. they were -- [ talking over each other ] >> unregulated. so what happened was the housing market collapsed dramatically, sean. >> there was a political cam gel. democrats and republicans made a political gamble. the president's political gamble was why didn't he push for a debt ceiling increase when he had a lame duck and -- they thought this is our opportunity to split those republicans in two and teach them. they are finding wait, some of these republicans are serious. some mean business. i'm terrified about a default. i think that is very bad news.

i want to see some kind of deal happen. i think this is the president [ talking over each other ] >> sean: how about dollar for dollar, republicans have one house. the president is using scare tactics using seniors scaring them unnecessary soar, using class warfare. republicans say okay we are going to save social security, save our defense, save the disabled. raise the debt ceiling so we done default and have dollar in cuts for every dollar in debt increase. then let the president default. >> that's exactly what they need to do. goldman sachs came out with a study that said even if they don't increase the debt limit they will send out social security checks. [ talking over each other ] >> sean: wait a minute governor. the president lied to the american people and lied to seniors. we take in 200 billion dollars a month. we have medicare, medicaid 50 billion, social security 49,

debt 29 billion. >> roughly 125 billion short. >> sean: no. >> still getting into military pay. >> none of that is included. you can pay social security, medicaid and medicare, can't pay the army -- >> sean: you are wrong. we'll continue with our great american panel, straight ahead. [ female announcer ] ever wish vegetables didn't taste so vegetably? well, v8 v-fusion juice gives you a full serving of vegetables, plus a full serving of fruit. but it just tastes like fruit. and try our deliciously refreshing v8 v-fusion + tea.

hey, dad, you think i could drive? i'll tell you what -- when we stop to fill it up. ♪ ♪ [ son ] you realize, it's gotta run out sometime. [ male announcer ] jetta tdi clean diesel. the turbo that gets 42 miles per gallon. ♪

>> sean: we continue with our great american panel. i'm going to prove the president told a lie and is using scare tactics for seniors. federal government receives approximately 200 billion dollars in revenues every month. national debt interest in august is going to be 29 billion. social security 49. medicare, medicaid 50 billion. active duty military pay 2.9 billion. veterans affairs 2.9 billion. 39 billion left. i'm not saying we don't need more money. what i'm saying is to use seniors as a pawn in this political chess game of his is uncon shun -- unconscionable. >> sean, every president has raised the debt ceiling. george bush did itself event times. right now it is time to sit

down and compromise. >> the republicans extracted tax cuts. not we are saying -- [ unintelligible ] [ talking over each other ] >> sean: why do you throw obama a pass? why do you give him a pass? >> i didn't give him a pass? >> sean: he didn't raise the debt ceiling for george bush now he's demanding we raise it or face catastrophe. he's either full of crap then or now. >> everybody in political office will feel one way for various reasons. here's the other thing, under bush, we had an sec where the banks ran crazy, wall street ran crazy an sec -- you couldn't find madoff.

they could not fan a prostitute in a whore house. i got you laughing. >> i wish more people were talking about cut cap and balance the budget. that's what jim demint is proposing an excellent idea. >> sean: the best idea. >> bill clinton wanted to do it in the 90s. democratic president in charge of the white house and republican congress were able to -- >> sean: i think that is my first choice. i want to be clear, cut, cap and balance. the cut has to be now not 15 years from now. >> long term solution. >> sean: i don't have confidence the democrats in the senate or this president would ever go near it. jay carney said the president won't support a balanced budget amendment. >> at least the american public sees the republicans doing it then they -- >> sean: i agree. >> one big problem is that the sides don't trust each other for good reason if you are

going to make a long term deal you have to have credibility of commitment if you make a deal right now two years down the road, you say the economy has picked up so we are going to start spending again. there's no trust. and it is totally reasonable. the republicans the last time -- we're gonna get these cuts. everyone is joking about -- [ talking over each other ] >> sean: i contend that if they don't listen to the mandate that was given them in 2010 -- apparently eric cantor and boehner is sticking strong here. i hope they do. they themselves are gonna pay a political price. equivalent i believe are read my lips no new taxes. >> republican leaders can make a deal with the president. but can they sell it to the membership? that's the problem. >> sean: there are some conservatives that are insisting on the balanced budget amendment which i think the country needs. [ talking over each other ]

>> can you do it in a deep recession? >> sean: should we have an up or down vote on the balanced budget amendment? >> you can't do it now because you don't have the revenues and the resources. >> do you need it to get 2/3? >> symbolic right now. >> sean: i think it ought to be a political issue. i want everybody on record where they stand. i think the american public has woken up that we are are taking a sledgehammer to our kids' futures. >> we are caring this debt as citizens. i think we forget that. that each of us owes the government money and we have to pay this. >> we all wanna get out of debt, absolutely. >> sean: why did obama spend us into oblivion and why do you defend it? >> he hasn't spent us into oblivion, come on. >> sean: that's all the time we have left.